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Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat

  • Wodon, Quentin
  • Minowa, Mari

For many years the government of Mexico has implemented a large training program for the unemployed. The program has been evaluated twice before with similar methodologies. These two evaluations yielded encouraging results in that the program apparently reduces unemployment and increases earnings. This article suggests that both evaluations may suffer from inappropriate controls for the endogeneity of program participation. Using the availability of the program at the state level as a determinant of individual participation, the article uses the data of the second evaluation to indicate that Probecat does not decrease unemployment, nor does it increase wages.

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File URL: https://mpra.ub.uni-muenchen.de/12310/1/MPRA_paper_12310.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12310.

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Date of creation: Jul 2001
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Handle: RePEc:pra:mprapa:12310
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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Revenga, Ana & Riboud, Michelle & Tan, Hong, 1994. "The Impact of Mexico's Retraining Program on Employment and Wages," World Bank Economic Review, World Bank Group, vol. 8(2), pages 247-77, May.
  3. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March.
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